Apple iPhone Production in India Hit with Low 50 Percent Component Yield

BY Sriansh

Published 14 Feb 2023

According to a new report by the Financial Times, Apple is facing challenges in scaling iPhone production in India. The primary reason for the same is poor component yields and slower progress compared to Chinese suppliers.

Apple is facing significant challenges in increasing iPhone production in India. According to the report, Apple supplier Tata’s facility in Hosur that produces iPhone casings, only 50% of the components coming off the production line are of acceptable quality for assembly at Foxconn. This low yield is not in line with Apple’s manufacturing goals of “zero defects.”

According to ex-Apple engineers, who spoke to the Financial Times, Chinese iPhone suppliers and government officials adopt a “whatever it takes” approach to win orders, completing tasks at an “inexplicable speed,” sometimes weeks before schedule. In contrast, operations in India are not performing at this level of urgency. “There is just no sense of urgency,” as stated by an Apple engineer.

Nonetheless, Apple is reportedly prioritizing a long-term strategy to enhance manufacturing efficiency in India. To achieve this, the company has sent product designers and engineers from both California and China to factories in southern India, where they’re training local workers and facilitating the establishment of production operations. 

Apple currently assembles a number of iPhone models in India, including the latest iPhone 14 series. The company is reportedly looking to shift iPad as well as AirPods production to the country. Tata, one of the top Indian multinational conglomerates, is aiming to become a comprehensive Apple supplier. The company is reportedly in negotiations to acquire a struggling Wistron iPhone assembly plant in Karnataka.

Source: Financial Times | Via: MacRumors